UJ
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The central question amid the global stock market downturn and anticipated losses in the US is how much hardship President Donald Trump is willing to endure in order to validate his tariff strategies.
On Sunday evening, Trump stated he is “open to talking” with international leaders about potential new agreements, attempting to maintain a positive demeanor despite the chaos caused by his trade policies after spending the weekend at his luxurious Florida resorts. He asserted that he had communicated with “numerous countries” and, despite global outrage over his “Liberation Day” tariff actions, claimed, “They’re being very nice.”
As he returned to Washington aboard Air Force One, stock prices plummeted when markets opened in Tokyo, and US futures indicated further significant declines were on the horizon for Wall Street on Monday.
“What’s going to happen with the market? I can’t predict, but I assure you, our nation is significantly stronger, and eventually, we’ll be unprecedented,” Trump remarked.
With markets closed over the weekend following days of severe losses, the administration had the opportunity to assess the situation. However, a clear strategy remains elusive as the political implications grow increasingly serious.
Senior officials provided mixed messages on Sunday regarding whether Trump perceives the economic strife he initiated as a short-term bargaining tool or if he is committed to reshaping the global economy, a process that may take years.
The uncertainty is compounded by growing unease among certain Republican lawmakers regarding the trade offensive, while substantial crowds across the nation participated in anti-Trump demonstrations, reflecting the most pronounced dissent during his second term.
The president and his top advisors appear largely detached from the public’s concerns regarding the potential recessionary effects of his policies, or they may feel overly confident in their outlook, showing little regard for the general populace. Trump shared a video of himself golfing in Florida, and the White House released an odd statement celebrating his victory in a local golf tournament.
This illustrates that Trump and his affluent peers are disconnected from the anxieties of average American families, who worry about their retirement savings and the escalating costs of groceries and vehicles due to increased tariffs. While the president asserts that his tax cut initiatives will enhance prosperity for all, he is betting after having secured a second term largely because voters perceived the Biden administration as ineffective in combating inflation.
The justification for Trump’s tariffs imposed on 185 nations and territories is rooted in the belief that the rest of the world has historically exploited the United States, aiming for the most aggressive protectionism in decades to restore jobs to struggling US industrial sectors.
While the benefits of globalization have not been evenly distributed, the US stands as the wealthiest and most powerful nation in history, deriving significant advantages from the free trade system that Trump is intent on dismantling.
Moreover, the far-reaching effects of his unexpectedly high tariffs pose a risk of severe disruption, potentially leading the US and the global economy into recession, which could result in widespread job losses and financial distress for millions. These fears have contributed to the global market chaos of the previous week, with worries that future declines could be imminent.
On Sunday, it fell to Trump’s Cabinet to elucidate the rationale behind his tariff strategy, an approach he has long pursued but which many economists deem imprudent and risky.
In a discussion with UJ’s Jake Tapper, Agriculture Secretary Brooke Rollins was asked how long the tariff turmoil would persist and whether it was a tactical maneuver. Her response highlighted the policy discrepancies causing profound uncertainty and unnerving financial markets.
“This is a national security matter. It’s about bringing back thousands, even millions of jobs,” Rollins stated on “State of the Union,” seemingly validating that Trump aims for a substantial restructuring of the global economy to revive manufacturing capabilities reminiscent of the peak industrial era.
Yet Rollins also indicated that 50 countries were “flooding the White House with calls” and suggested that the tariffs were designed simply as leverage. “This is the ultimate dealmaker, with a businessman at the helm of our government,” she remarked.
This aligned with Trump’s subsequent statements on Air Force One expressing readiness to negotiate with China and the European Union over reducing trade deficits with the United States. These remarks could be interpreted as an effort to mitigate anticipated market turmoil on Monday.
Engaging in bilateral negotiations with numerous countries might yield new trade terms that benefit the United States. However, such an approach is unlikely to recreate the manufacturing boom of the late 19th century that Trump envisions, and the economic devastation his policies entail raises questions about whether the possible gains would outweigh the costs.
The administration appears focused solely on negotiating terms that would mandate other countries to concede entirely. “This is not a negotiation,” warned Trump’s chief trade advisor, Peter Navarro, during an appearance on Fox News’ “Sunday Morning Futures.” He cautioned that even a proposal of zero tariffs would be inadequate, indicating that nations must acquiesce to White House conditions on various issues, including non-tariff barriers and currency matters.
While Trump’s concern for Americans displaced by the modern economy is commendable, his fixation on trade deficits and goods trade represents an outdated perspective. It overlooks the reality that the US economy has evolved into a technological and service-driven powerhouse, and it cannot produce basic goods such as clothing as efficiently as lower-wage countries abroad. Manufacturing these items domestically would lead to increased costs, raising the cost of living and adversely affecting the prosperity of many Americans.
While Rollins appeared to mimic Trump’s previous assertions that tariffs serve as leverage, Commerce Secretary Howard Lutnick took a firmer stance on Sunday.
“There’s no postponing the tariffs,” he asserted regarding the duties set to take effect Wednesday. “They are definitely going to remain in place for the foreseeable future,” Lutnick stated on CBS’ “Face the Nation.” He continued, “The president needs to reset global trade… The nations of the world are exploiting us, and this needs to cease.”
Lutnick seems to believe that US strength can force weaker nations to concede. He previously told UJ’s Pamela Brown that retaliating would be ill-advised. “If you retaliate against the greatest customer in the world, you’re setting yourself up to lose. We are the sumo wrestler of this world.”
The US is powerful enough to potentially succeed in direct confrontations with most nations. However, the administration rarely discusses the ramifications of simultaneous tariff retaliation from all major trading powers. China, for instance, faces a cumulative tariff of 54% on its exports to the US, which will severely limit the purchasing power of American consumers; despite Trump’s insistence that other nations bear the costs of tariffs, it is ultimately the consumers who will pay. This could negatively impact US retailers and dampen consumer sentiment, potentially triggering a recession. China has also imposed a 34% tariff on US products, complicating an already difficult market for American businesses.
Severe declines on US stock markets last week — with both the Dow and S&P 500 dropping over 5% on Friday alone — have alarmed countless Americans whose retirement plans are tied to their 401(k) accounts.
In contrast, Treasury Secretary Scott Bessent insisted that a recession was unnecessary and downplayed the long-term effects of stock market declines, describing them as “choppiness” and “an adjustment process.” He also expressed on NBC’s “Meet the Press” that he dismissed concerns that impending retirees took a significant hit. “Americans who have been saving for years do not focus on daily market fluctuations,” Bessent said, adding, “The stock market is considered a solid investment over the long term. Monitoring it daily or weekly can be high-risk. In the long view, it is a sound investment.”
Technically, Bessent is correct, and stocks have historically proven to be a wise investment over years and decades, weathering economic fluctuations and downturns. However, his remarks exemplified a strikingly tone-deaf view from a multi-millionaire Cabinet member.
These attitudes raise concerns about whether the president’s strategy might erode his public support, particularly if tariffs remain for extended periods and resulting price increases significantly impact families. Recent polls from Wall Street Journal, CBS News, and Marquette University Law School, all conducted before Trump’s “Liberation Day” remarks, revealed that a majority of Americans disapproved of the president’s tariffs.
Some Republican senators are already expressing unease. Several have backed a proposal championed by GOP Sen. Chuck Grassley to mandate presidential justification for new tariffs to Congress. Lawmakers would have to authorize them within 60 days or the tariffs would be nullified.
Sen. Maria Cantwell, a Democrat from Washington state co-leading the initiative with Grassley, mentioned on Sunday that bipartisan support for the bill is growing, with seven GOP senators already on board—a rare departure from Trump’s stance.
“I’m sure they are responding to their constituents. Consumer challenges are increasingly evident, and certainly, the stock market’s effect on retirement income is alarming many,” Cantwell stated on CBS. However, the bill faces significant hurdles in the House, and it is unclear whether it could garner veto-proof majorities.
After a prolonged period of mourning their November defeat, Democrats are beginning to show signs of resurgence. A liberal candidate achieved a significant victory in a recent Wisconsin Supreme Court election. Moreover, the substantial protests against Trump and Elon Musk in multiple cities last Saturday might signal a rekindled resistance movement as we approach the 2026 midterm elections.
Nonetheless, Trump exhibits no inclination to amend his course. He posted on his Truth Social platform on Saturday that “we have previously been seen as the foolish and helpless ‘whipping post,’ but that won’t continue.” The president continued, “THIS IS AN ECONOMIC REVOLUTION, AND WE WILL EMERGE VICTORIOUS. HOLD STRONG.” The following day, he was back on the golf course.
